Pakistan is preparing to borrow over Rs56 billion from the Asian Development Bank (ADB) as part of a major plan to improve the performance of the Federal Board of Revenue (FBR).
The government has unveiled a comprehensive plan to modernise Pakistan’s tax system. The move comes as authorities seek to address longstanding weaknesses in revenue collection and transparency.
According to official documents, Pakistan plans to secure a loan exceeding Rs56 billion from the Asian Development Bank.
The borrowing is part of a broader strategy aimed at improving the performance of the Federal Board of Revenue (FBR), which has faced criticism over inefficiency.
$200m for digital transformation
The government has proposed allocating $200 million from the loan towards digitising the country’s revenue system. The primary objective is to bring greater transparency and efficiency to tax and customs operations.
Officials believe that digital transformation will help reduce inefficiencies and strengthen governance.
The plan includes several key measures to modernise the FBR system. These include the promotion of point-of-sale (POS) systems and the introduction of digital invoicing to streamline transactions.
Authorities aim to remove loopholes in the revenue system to improve tax collection and accountability.
A major component of the reform plan is the use of data analytics to enhance performance. Officials intend to leverage data-driven tools to identify gaps, improve compliance, and increase revenue generation.
This approach is expected to make the tax system more efficient and responsive.
Simplify trade and expand tax net
The plan also focuses on making trade processes easier and more transparent. By simplifying procedures, authorities aim to encourage compliance and facilitate business activity.
At the same time, efforts will be made to expand the tax net and strengthen the overall economy.
The government’s long-term goal is to establish a fully automated and modern revenue system in Pakistan. Modernising the FBR remains a central part of this strategy, with reforms designed to ensure sustainable improvements.
Officials say the initiative will contribute to a stronger, more transparent economic framework.
